For the past six months I have been making monthly payments to a collection agency. Was told if I don't triple the amount I was sending, the agency was going to sue me. For four months the agency would call me at work and ask if I was going to triple the payment, if not they were going to sue. Finally the last phone conversation I was threatened with my checking account to be froze and my personal items from my home taken and sold. I had enough. I contacted the Better Business Bureau about this. All of the sudden from dealing with the lady I was talking to, The President of the company was now involved. The last payment I sent to the agency(the month that was suppose to be tripled) I enclosed a letter stating that until the BBB was through investigating I was only sending them half of what they asked for. Three days later I received in the mail the letter I had sent (of which I kept) This took place on 06/22/2004. As of today (07/26/2004) the check I sent still has not been debited out of my account. Last week I called the courts to see if anything had been filed against me. There had. Five days later I had not received anything, called back down to courts. Was told that the agency had there own way of getting the paper work to me. Not the standard drop off by local sheriff dept. I have 27 pages of papers to support everything that has happened and the lies the agency has told. I have this feeling I am about to get steemrollered because I don't know the law behind collection Agency's. Please, Please help me. What should I do?

Collection Agencies are governed by the Federal Fair Debt Collection Practices Act (the FDCPA).  FDCPA prohibits agencies from certain things like making threats that they have no intent to follow through on and making threats that they have no legal ability to fulfill.  It sounds like this may have happened in your case.

You can find a copy of the Act on the Federal Trade Commission website (www.ftc.gov).  It is easy to read and I suggest you do so.  You can file a complaint against the collection agency with the FTC or your State Attorney General.  I suggest you do both.

The Creditor has the right to sue for payment if you are delinquent on your obligation.  You may be served notice of the suit by mail (the inexpensive way) or by personal service (someone physically places the summons in your hand).  In either event, the summons will tell you what courtroom and the day and time to be present.

If you are sued in small claims court, you will  not necessarily need an attorney.  Small Claims Court Judges are very practical people and gear everything down to keeping things on a common level.  The creditor tells the judge their story.  You tell the judge your story.  The judge may ask some questions.  The judge will then render a decision.

If the judge rules in favor of the creditor, a judgment will then be entered against you.  The creditor may then seek a garnishment of wages or bank accounts to satisfy the judgment.

Your best bet is to try to reach a mutually agreeable settlement with the collection agency.  You can try to do it yourself or you can seek a professional debt settlement negotiator to assist you.

Send me an email if you would like to discuss and we can trade phone numbers.